Jan. 17 (Bloomberg) -- Chevron Corp., the second-largest
U.S. oil company, said a search and rescue operation continues
for two contractors missing after a fire yesterday at a rig off
the coast of Nigeria.

The accident happened at the K.S. Endeavor rig, which was
drilling a natural-gas exploration well in the Funiwa Field
about six miles (10 kilometers) off the coast in about 40 feet
of water, San Ramon, California-based Chevron said in a
statement today. The rig is operated by FODE Drilling Nigeria
Ltd., Chevron said.

There was a possible failure of surface equipment during
drilling work that led to a loss of well control, based on
initial indications, Chevron said. The rig has partially
collapsed and the well is burning, the company said, adding that
it can’t estimate how long the fire will continue.

The company said 152 workers on the rig and a related barge
were evacuated safely, are onshore and have received medical
examinations. Two workers are hospitalized because of minor
burns, and others are being kept for observation, Chevron said.

A sheen estimated at about 13 barrels is visible near the
well, according to the company. Chevron said production from the
North Apoi platform, which had total output of about 2,000
barrels a day, is still shut because of its proximity to the
accident.

Chevron said it’s mobilizing Transocean Ltd.’s Baltic rig
to start drilling a relief well, and the completion of such a
well “could extend for some period.” Other experts and
specialists are being sent to assist, the company said.

Chevron said it has a 40 percent interest in the well,
while the Nigerian National Petroleum Corp. has 60 percent.
Chevron rose 1 cent to $106.73 after the close of trading on the
New York Stock Exchange.